SECURITY Bank announced on Monday that it has successfully raised P6.06 billion
in its offer of Long-Term Negotiable Certificates of Deposit (LTNCD).
The LTNCD offer marks the second time the bank has tapped the debt capital markets to raise funds this year.
Security Bank said this issuance was driven by solid demand from both retail and institutional investors, resulting in total subscriptions of P6.06 billion.
The subscriptions exceeded the original offer of P5 billion, allowing the bank to successfully price the LTNCD at 4 percent, despite rising interest rates and broader market volatility.
“This issuance has firmly placed our credit among retail investors—the LTNCD gives the investing public the chance to further express their confidence in Security Bank’s stability and ability to grow,” Security Bank Executive Vice President and Treasurer Raul Pedro said.
The P6.06 billion drawdown marks the first tranche of Security Bank’s P20 billion approval from the Bangko Sentral ng Pilipinas.
The issue date is set at September 23, 2019, with March 23,2025, as maturity date.
Deutsche Bank AG, Manila branch acted as the Sole Lead Arranger and Selling Agent, assisted by Security Bank.
Security Bank further said the LTNCD issuance is part of the bank’s efforts to diversify its funding sources and support business expansion plans.
Security Bank is among the six largest private domestic universal banks in the Philippines by total assets—currently at P767 billion—as of December 31, 2018.